This article was originally drafted as a letter to our clients the day after the 2016 election.


It’s November 9th. The sun rose this morning. The birds were singing in the trees.
 
But, the paradigm has shifted.
 
Our team met this morning to discuss the results of the Presidential election and what it means for the markets, economy and ultimately, to our clients. While the pundits and pollsters were commenting and making predictions, we saw markets rise and fall with those comments and predictions. In the end, they were all wrong.
 
President-Elect Trump is an unknown when it comes to governing. Markets do not like uncertainty. There were moments last night when Dow futures were down over 700 points. This morning, however, the market opened up basically flat. That’s an incredible swing.
 
I believe that in times of uncertainty, we bring the best value to our clients. It’s easy to ride the wave when markets are rising, when it appears that every choice is a good choice. But, it’s the uncertain times that truly matter.

  • Our strategy of broad diversification and bias towards more conservative allocations helps.
  • Our analytical model which takes into account both market sentiment and volatility contributes as well.
  • Finally, our ability to make tactical investment decisions based on that analytical model closes the loop.

These factors bring together the quantitative and fundamental side of our value proposition.
 
In addition, our responsible investing philosophy charges us with finding companies and investment managers that are sustainable and doing good in the world. This qualitative side compliments the quantitative and fundamental analysis. And, I believe it makes for a better, more thoughtful and intentional, portfolio.

Now more than ever, consumers and investors need to vote with their dollars. The choices that we make matter. The legislation that will not happen in Washington must happen in corporate board rooms. I am more convinced than ever that responsible investing is the way to move forward.
 
Ultimately, I have faith in the ability of the markets to separate out the good from the bad – regardless of the political situation. We are grateful for the trust our clients have placed in us from the day we opened our doors. With a stronger sense of purpose to closely align financial planning and investment management with future-forward values, we will continue to work diligently to make sure client portfolios are the best they can be, no matter what circumstances arise.
 

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